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Summary

We conducted a quality control review (QCR) of DOT’s major grant programs included in the single audit of the San Diego Metropolitan Transit System (MTS), San Diego, CA, that Pun & McGeady, LLP performed for MTS’s fiscal year ended June 30, 2014. Pun & McGeady determined that DOT’s major program was the Federal Transit Cluster. Pun & McGeady rendered an unmodified opinion on MTS’s financial statements and compliance with DOT’s major program requirements and did not question any costs.

The purpose of our QCR was to determine (1) whether the audit work complied with the Single Audit Act of 1984, as amended, and OMB Circular A‑133; and (2) the extent to which we could rely on the auditors’ work on DOT’s major programs. We determined that Pun & McGeady’s audit work was Acceptable with Deficiencies, and therefore, generally met the requirements of the Single Audit Act and OMB’s Circular. We found nothing to indicate that Pun & McGeady’s opinion on DOT’s major program was inappropriate or unreliable.

We identified deficiencies in the audit documentation related to Internal Control—Matching and Special Tests and Provisions; and Procurement and Suspension and Debarment (Part 4 of the Compliance Supplement). While these deficiencies need to be corrected in future audits, they did not alter the overall results of the audit report.